Ages 40 & 36
60% stocks (60% U.S.)
40% bonds
We will probably stay at this allocation until retirement; then go to 50/50.
Search found 13 matches
- Wed Jun 24, 2015 6:50 pm
- Forum: Investing - Theory, News & General
- Topic: What ratio are you stocks/bonds and how old are you?
- Replies: 449
- Views: 95654
- Wed Mar 11, 2015 2:57 pm
- Forum: Investing - Theory, News & General
- Topic: Bond fund or CD Ladder
- Replies: 16
- Views: 4996
Re: Bond fund or CD Ladder
I plan to set up a CD ladder through Vanguard after some penfed CD's mature. I like the convenience of having all funds at vanguard, totally safe investment, and the flexibility of a CD maturing each year.
It's true that the initial yield will be similar to STIG, but as you roll all rungs into 5 yr CD's, the yield will increase. It's also not an equal comparison between an FDIC insured CD and a bond fund with credit and interest rate risk. Of your two choices, I'd go with the CD ladder.
I think a CD ladder along with an intermediate term bond fund is a good complementary fixed income allocation. It's useful to have a bond fund for rebalancing.
It's true that the initial yield will be similar to STIG, but as you roll all rungs into 5 yr CD's, the yield will increase. It's also not an equal comparison between an FDIC insured CD and a bond fund with credit and interest rate risk. Of your two choices, I'd go with the CD ladder.
I think a CD ladder along with an intermediate term bond fund is a good complementary fixed income allocation. It's useful to have a bond fund for rebalancing.
- Sun Feb 08, 2015 2:38 pm
- Forum: Personal Investments
- Topic: 401 k fund options vs taxable
- Replies: 12
- Views: 1056
Re: 401 k fund options vs taxable
Thank you for the suggestions. I think I'll stick to the bond funds in the 401k along with the SP500.
- Sun Feb 08, 2015 10:38 am
- Forum: Personal Investments
- Topic: 401 k fund options vs taxable
- Replies: 12
- Views: 1056
Re: 401 k fund options vs taxable
No, they were all purchased through a former adviser in 2009. There are substantial gains across many of the funds.retiredjg wrote:Did you inherit the DFA funds? If so, do you have a small amount of gains? Do you want to keep them?
I would like to sell them eventually when I'm in a lower tax bracket. For now, I'm holding onto them, but not reinvesting any dividends or capital gains.
This was the main topic of my first post viewtopic.php?f=1&t=149471
- Sun Feb 08, 2015 10:14 am
- Forum: Personal Investments
- Topic: 401 k fund options vs taxable
- Replies: 12
- Views: 1056
Re: 401 k fund options vs taxable
I edited my original post with additional information.ruralavalon wrote:Actually the international equity funds aren't bad, just not as good as Vanguard Total International.
What other accounts do you have, what are their relative sizes, what investments are in them, and how much do you contribute annually to each account? Please see: "asking portfolio questions".
- Sat Feb 07, 2015 7:16 pm
- Forum: Personal Investments
- Topic: About to stop using DFA/Dropping Advisor
- Replies: 29
- Views: 7022
Re: About to stop using DFA/Dropping Advisor
I have been using an advisor for the past 3 years. Beforehand had been using Vanguard, and ended up transferring all assets to TD Ameritrade because of the advisor. Now have multiple DFA funds that I was told by the advisor I would have to sell if I stop using his services. I have read it is possible to hold onto DFA funds on this website, but does this pertain to certain DFA funds? I asked TD Ameritrade if my funds could be held on the retail side and they said no. The funds I have are listed below. If I am not able to hang onto these funds, obviously there are costs associated with liquidating the funds but what I'm not clear about is the significant/extent of these costs. Any advice is appreciated. DFTIX DFSMX DTMIX DTMMX DFSVX DFGEX DF...
- Sat Feb 07, 2015 6:51 pm
- Forum: Personal Investments
- Topic: 401 k fund options vs taxable
- Replies: 12
- Views: 1056
Re: 401 k fund options vs taxable
Thank you for the replies.
As expected, the international equity funds are not worth it, but the sp500 is.
On the bond side, I was comparing the SEC yields:
WTRIX 1.78
VBIPX 0.96
VWITX 1.41 (in 28% tax bracket is 1.96)
Of the bond options, I'd trust Vanguard over Wells Fargo, but I'd prefer intermediate term duration.
I don't know if the tax deferred bond is better than the muni bond.
Should I just compare yields, or is there something else to having bonds in tax deferred?
As expected, the international equity funds are not worth it, but the sp500 is.
On the bond side, I was comparing the SEC yields:
WTRIX 1.78
VBIPX 0.96
VWITX 1.41 (in 28% tax bracket is 1.96)
Of the bond options, I'd trust Vanguard over Wells Fargo, but I'd prefer intermediate term duration.
I don't know if the tax deferred bond is better than the muni bond.
Should I just compare yields, or is there something else to having bonds in tax deferred?
- Sat Feb 07, 2015 3:33 pm
- Forum: Personal Investments
- Topic: 401 k fund options vs taxable
- Replies: 12
- Views: 1056
401 k fund options vs taxable
My 401k fund has the following funds I would consider: US equity BlackRock SP500 fund 0.05 International equity GMO INTERNATIONAL EQ FD CL III GMOIX 0.69 MFS INSTITUTIONAL INT'L EQUITY MIEIX 0.72 US investment grade bond Vanguard short term bond index institutional VBIPX 0.05 WELLS FARGO ADVAN CORE BOND R6 WTRIX 0.48 So far I have putting everything into the SP500 fund, but my overall asset allocation for US equity is about at the maximum. I would like to put future 401k contributions into either international or bond, but the choices are less than ideal. I also will have after tax money to invest in my taxable Vanguard account. I am putting the maximum allowed into the 401k, and I should hit the 2015 contribution limit by mid May. I’m cons...
- Thu Jan 08, 2015 8:27 pm
- Forum: Personal Investments
- Topic: Portfolio Review help re to dropping advisor
- Replies: 17
- Views: 3051
Re: Portfolio Review help re to dropping advisor
- Kevin asked is I could keep my DFA Funds if I dropped the advisor. Yes, I can keep the funds at my current brokerage, or they could be transferred to Vanguard brokerage. I can not purchase any additional shares of any DFA Funds if I drop the advisor. If I drop the advisor then my brokerage account will change to a retail account, not an institutional account. Thus, instead of $24 to sell a DFA Fund it would change to I believe $60 to sell. Just to note different advisor's have different agreements with the brokerage firm they are working with; example a big firm that works with DFA Funds like Buckingham Asset Mangement (Larry Swedroe's firm) a client can buy and sell for $20, while a small advisor firm like mine is not able to negotiate ...
- Mon Dec 29, 2014 8:56 pm
- Forum: Investing - Theory, News & General
- Topic: Bond SEC yield, credit rating
- Replies: 10
- Views: 934
Re: Bond SEC yield, credit rating
Thank you for the replies.
I understood that below investment grade "junk" bonds may not return their SEC yield due to defaults. I was thinking that SEC yield would be a good comparison between "investment grade" funds. There is no free lunch...
I understood that below investment grade "junk" bonds may not return their SEC yield due to defaults. I was thinking that SEC yield would be a good comparison between "investment grade" funds. There is no free lunch...
- Mon Dec 29, 2014 8:13 pm
- Forum: Investing - Theory, News & General
- Topic: Bond SEC yield, credit rating
- Replies: 10
- Views: 934
Bond SEC yield, credit rating
Does the credit rating of a bond fund affect the SEC yield?
I am comparing Vanguard intermediate term bond index VBILX with intermediate term investment grade VFIDX.
According to Vanguard, both funds are a "risk potential" 2. Morningstar lists both funds average credit quality as 'A'.
I understand VBILX is 50% treasuries, while VFIDX is mostly corporates. VFIDX has an SEC yield 25 bps higher with a duration 1.3 years shorter.
If I plan to hold the fund for the duration, is it a safe bet that VFIDX would have a higher return?
I am comparing Vanguard intermediate term bond index VBILX with intermediate term investment grade VFIDX.
According to Vanguard, both funds are a "risk potential" 2. Morningstar lists both funds average credit quality as 'A'.
I understand VBILX is 50% treasuries, while VFIDX is mostly corporates. VFIDX has an SEC yield 25 bps higher with a duration 1.3 years shorter.
If I plan to hold the fund for the duration, is it a safe bet that VFIDX would have a higher return?
- Sun Oct 26, 2014 7:50 am
- Forum: Personal Investments
- Topic: Capital gains in taxable; DFA / Vanguard
- Replies: 5
- Views: 1262
Re: Capital gains in taxable; DFA / Vanguard
Thank you for the replies. Since the 3 and 5 year performance of most of the DFA funds beats the Vanguard total market funds, I thought this might be a good time to sell off the DFA. I was considering selling the funds that over performed, and keep the ones that under performed. I also recognize that this is some recency bias pushing me to sell since these funds have under performed YTD. I am still saving, so I agree that the DFA % should decrease over time. I have a spreadsheet set up that shows allocation of equity/fixed income, US/international. Right now the portfolio is balanced for my desired allocation. I know I have a small/value tilt, but I don't know exactly how much. I guess I will hold onto these funds for the foreseeable future...
- Thu Oct 23, 2014 7:21 pm
- Forum: Personal Investments
- Topic: Capital gains in taxable; DFA / Vanguard
- Replies: 5
- Views: 1262
Capital gains in taxable; DFA / Vanguard
Hello, my question is specifically about what to do with my current equity holdings in a taxable account. These are all in DFA funds purchased in 2009 through a previous financial adviser (I now manage the accounts myself). I would like to move to a 3 fund portfolio at Vanguard, but I have a capital gains in these funds. Emergency funds: Yes, six months. Debt: none Tax Filing Status: Married Filing Jointly Tax Rate: 28% Federal, 3.07% State State of Residence: PA Age: 39; DW is 35 Desired Asset allocation: 65% stocks / 35% bonds Desired International allocation: 40% of stocks Current holdings: 1.92% DFA EMERGING MKTS CORE EQTY PORT INSTL DFCEX 0.63 0.35% DFA EMERGING MKTS PORT INSTL DFEMX 0.57 2.84% DFA INTL CORE EQTY PORT INSTL DFIEX 0.39 ...